Kash Rangan, an analyst from Goldman Sachs, reiterated the Sell rating on TechTarget (TTGT – Research Report). The associated price target is $31.00.
Kash Rangan assigned a Sell rating to TechTarget (TTGT) due to a variety of reasons. Despite a solid performance in recent quarters, where revenue and Adjusted EBITDA exceeded consensus estimates, and fourth quarter revenue projections meeting expectations, there are still some concerns. These arise particularly due to a contraction in subscription revenue, which shrunk to 36% of the total revenue, indicating customers’ cautiousness about committing to long-term investments.
Moreover, while TechTarget showed potential for a positive turn in the near-to-mid-term, based on the company’s claim of operating at the bottom of the sales cycle, Rangan would prefer to see more evidence of sustainable revenue growth and progress towards generating over 65% of revenue from subscriptions. Despite the company’s continuous focus on product investments and efficient operations, it is considered prudent to await further signs of a more stable and robust financial performance before altering the Sell rating. Thus, the rating remains and the price target is raised to $31.
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TechTarget (TTGT) Company Description:
TechTarget, Inc. engages in the provision of online content for buyers of enterprise information technology products and services. It also offers purchase-intent marketing and sales services for enterprise technology vendors. Its products portfolio includes demand generation, brand consideration, sales enablement, and marketing intelligence. The company was founded by Don Hawk and Greg Strakosch on September 14, 1999 and is headquartered in Newton, MA.
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